Consumer Price Premiums for FSC-Labeled Wood Flooring: A Comparison of Five Chinese Cities

Qin Tan, Kohei Imamura, Kenji Nagasaka, Masafumi Inoue


Widespread use of Forest Stewardship Council (FSC) certification advances sustainable development goals in China (FSC 2016). However, consumer purchasing behavior varies among cities because of differences in economies, education, and urban environment. This study assesses the price premium consumers are willing to pay for FSC-labeled wood flooring in five Chinese cities. It examines differences in consumer preferences, identifies target markets for FSC-labeled products, and suggests strategies to increase acceptable price premiums in different cities. Results from 1,004 online questionnaires in five cities show that mean price premiums for FSC-certified wood flooring are 42 CNY/m2 in Beijing, 39 CNY/m2 in Shanghai, 37 CNY/m2 in Guangzhou, 48 CNY/m2 in Tianjin, and 45 CNY/m2 in Chongqing. Guangzhou shows the largest potential market shares for spreading FSC-labeled wood flooring when price premiums range from 0 to 30 CNY/m2, whereas Chongqing shows the largest potential market shares when they span 70–100 CNY/m2. Results also suggest city-specific strategies to raise consumer-accepted price premiums for FSC-certified wood flooring: raise consumer knowledge of The FSC label in Beijing and Shanghai, target buyers of high-priced wood flooring in Guangzhou and Chongqing, and improve consumers’ satisfaction with the urban environment in Guangzhou and Tianjin.

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